North Carolina refused Tesla Motors bid to achieve a 2nd dealership license in the state, stating that Tesla has to go through a third-party dealer group.
The North Carolina Division of Motor Vehicles made it on Friday that Tesla did not fulfill the requirements to end up being exempt from state law restricting makers from owning car dealerships.
Tesla had wanted to open a 2nd North Carolina dealership area at its existing gallery and service center in Matthews, N.C., a suburban area of Charlotte. The firm has one dealership in the state, in Raleigh.
The judgment is the newest in a long series of fights Tesla has waged with dealership groups and state legislators on the legality of its direct-sales design. Tesla owns and operates its own dealerships, which the automaker says enables it to more effectively retail its cars. Challengers of the direct-sales model have said it harms consumers.
Tesla argued this month that the Matthews area should be exempt from the state’s ban on manufacturer-owned dealers, as per a DMV order. The state instead agreed four car dealership groups in opposing releasing the permit. Hendrick Automotive Group and Sonic Automotive Inc. were two of the opponents.
The North Carolina DMV, in an order made by Administrative Hearing Officer Larry Greene, stated there are “at least 3 independent dealers” in the industry that would have the ability to own and run a Tesla dealer in a manner consistent with the general public interest, suggesting the exemption would not apply.
